Nu Skin Enterprises Inc. (NUS – Free Report) has announced a strategic move that could shape its future. The company’s subsidiary, Rhyz Inc., completed the sale of its Mavely affiliate marketing technology platform to Later, a portfolio company of Summit Partners, for nearly $250 million. This deal includes the cash payout and a minority equity stake in the merged Later/Mavely business. As part of the deal, Mavely will continue to offer technology and social commerce solutions to enhance Nu Skin’s affiliate marketing operations.
The integration of Later and Mavely will provide enhanced capabilities to Nu Skin as it continues to expand its beauty, wellness and lifestyle ecosystem. The transaction also generates additional capital and resources, enabling increased innovation within Nu Skin’s core business and further investment in Rhyz companies. This deal highlights the value of Rhyz in fostering and scaling impactful businesses that create synergies across Nu Skin’s operations.
NUS’ Positive Return on Investment
The sale of Mavely marks a notable success for Nu Skin, as the company generated a five-times return on its investment in Mavely, which it acquired in 2021. The deal will not only reduce the company’s debt but also fund innovations in its core business. In addition to driving growth within Nu Skin, the proceeds will enable the company to enhance shareholder value, particularly through its existing stock repurchase program.
Image Source: Zacks Investment Research
What Else Should You Know About NUS?
The operating environment for Nu Skin’s core business remains challenging due to macroeconomic factors and pressures within the direct selling industry. Inflationary pressures, political uncertainty and weak consumer sentiment in key markets are likely to persist into 2025. Despite efforts to stabilize its business, the Zacks Rank #5 (Strong Sell) company lacks clear visibility into when its core direct-selling business might return to growth.
Despite current challenges, Nu Skin’s strategic sale of Mavely and its ongoing investments in innovation and growth through Rhyz position the company for a more resilient future, paving the way for long-term success in its evolving beauty, wellness and lifestyle ecosystem. NUS shares have gained 17.6% in the past three months against the industry’s decline of 17.5%.
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